ABSTRACT
This study is conducted on an Assessment of
Contribution of Commercial Banks in the Economic Development of Nigeria. The
concept is also on eye opener to the society and business as well. The research
was carried out by means of questionnaires and oral interview with the
official/staff of the bank selected on which the following questions that need
to be tested are based on the contribution of commercial bank to the economic
development.
In this research some relevant hypotheses have
been formulated and their validity has been proven by the findings and analysis
of relevant data obtained. It is hope that this study will give the readers,
the societies and business world as a whole the need for effective
understanding of the concept in order to achieve a sound atmosphere between the
society and organization.
TABLE OF
CONTENTS
CHAPTER
ONE
Introduction
1.1 Background of the Study
1.2 Statement of the Problem
1.3 Hypothesis/Research Questions
1.4 Objective of the Study
1.5 Significance of the Study
1.6 Scope of the Study
1.7 Limitation of the Study
1.8 Historical Background of the Case Study
Reference
CHAPTER
TWO
Literature
Review
Conceptual
Framework and Review of Related Literature
2.1 Introduction
2.2 Introduction to Banking Industry in Nigeria
2.3 Meaning of Commercial Bank
2.4 Functions of Commercial Banks
2.5 Objectives of Commercial Banks
2.6 Problems of Commercial Banks
2.7 Suggested Solution
2.8 Recent Development in Commercial Banks in
Nigeria
2.9 Definition of Term
Reference
CHAPTER
THREE
Research
Methodology
3.1 Introduction
3.2 Research Design
3.3 Population of the Study
3.4 Sample and Sampling Techniques
3.4.1 Method of Data Collection
3.4.2 Primary
Source
3.4.3
Secondary Source
3.5 Method of Data Analysis
CHAPTER
FOUR
Data
Presentation and Analysis
4.0 Data
Presentation
4.1 Data
Analysis
4.2 Test
of Hypothesis
4.3 Major
Findings
CHAPTER
FIVE
Summary,
Recommendation and Conclusion
5.1 Summary
5.2 Conclusion
5.3 Recommendation
5.4 Further Study
Bibliography
Appendices
CHAPTER ONE
1.1
BACKGROUND
OF THE STUDY
Nigeria
as a nation is characterized by a developing economy due to the fact that the
various sectors responsible for economic development are not optimally utilized
as a result of which we have not being able to tap fully the natural resources
that Nigeria is blessed with as it could increase our national earnings leading
to an increase in per capita income instead. We have a reverse situation were
there is low per capital income. Low standard of living increase in the level
of insecurity etc.
The
first task every government put in its table of priority is economic
development. Nigeria among other nations of the world is not excluded. In order
to keep the development of the country in progress Bank plays a pivotal role
especially the commercial banks. It is of importance to not that of this point
the bedrock of every economy is the banking sector, of which the commercial
bank is a leading pace. As a matter of fact, no country in the world in this
present dispensation can boast of having developed or tested development
without the adequate and timely contribution of commercial banks.
However,
one of the major setbacks to economic development in countries today is the
inadequate supply of capital. It is in this regard, the commercial banks serve
as ling between those who need capital and those willing to save and make the
money available to investors. They are expected to provide to an extent large
credit facilities and divert voluntary savings into productive channels. In
addition, they are to offer technical advice to industrialist by way of
feasibility studies which ensure that investment are made in the right
direction.
Furthermore,
there are numerous agencies/sectors involved in economic development, but of
all the sector that stimulate growth and development into the economy of
Nigeria is the commercial banks perhaps the commercial banks the most important
role such as help to pool savings and excess liquidity from millionaires or
rather millions of individuals and firms within the country making them available
to those that require them for various purposes.
Economic
development requires sustained improvement in social welfare that are pervasive
through the society and modern economic growth that is confined to a small
enclose within a developing society particularly if a non-indigenous people
dominate that enclose, it is not economic development. Economic development
requires that modern economic growth affect a broader segment of the total
populace in a way that will enhance their welfare. It entails the provision of
basic needs, acceleration of economic growth, reduction of inequality and
unemployment, eradication of absolute poverty as well as changes in attitudes.
Subsequent
to the above provisions that stimulated the establishment of commercial banks
in Nigeria is to meet the aspirations of the citizenry. This research work is
aimed at identifying the contributions that commercial banks have made to the
development of the Nigerian economy.
1.2
STATEMENT
OF PROBLEM
Countries
over the world strive to articulate well meaning polices that would extinct
them from obscurity. Nigeria as a nation is also on the queue alongside other
countries that quest for economic prestige. That is why the country had
established various commercial banks to salvage the economy. However, in spite
the establishment of the commercial banks, Nigerians still decry of inadequate
capital for investment, high level of unemployment. The reduction in the Gross
Domestic Product (GDP) which were the care issues that the concept for the
establishment commercial banks was conceived to address.
1.3
HYPOTHESES/RESEARCH
QUESTION
Hypothesis
is the statement which shows the relationship between two variables.
Consequently,
for the purpose of this study, the hypothesis are as follows:
Ho:
The establishment of commercial banks in
Nigeria has contributed to economic upliftment of the country.
Hi:
The establishment of commercial banks in
Nigeria has not contributed to economic upliftment of the country.
Ho:
Increase in bank lending will reduce
unemployment in the country.
Hi:
Increase in banks lending will not
reduce unemployment in the country.
Ho:
Increase in banks lending will increase
the country’s Gross Domestic Product (GDP)
Hi:
Increase in banks lending will not
increase the country’s Gross Domestic Product (GDP)
1.4
OBJECTIVE
OF THE STUDY
This
study is primarily aimed at examining critically an assessment of contribution
of commercial bank to the economic development of Nigeria. Specifically, the
study aim to;
1.
Evaluate the contribution of
commercial bank to the economic growth of Nigeria.
2.
Investigate the role of commercial
bank in the development of the economy of Nigeria.
3.
To make suggestions on how the
activates of commercial bank could bring about investment
4.
To appraise the extent to which commercial
bank has been affected as a result of economic meld-down.
5.
The study also aim at taking a
critical look at the cause of the economic meltdown and how to manage it.
1.5
SIGNIFICANCE
OF THE STUDY
The
research project aim at critically looking into an assessment of contribution
of commercial banks in the economic development of Nigeria with special
reference to First Bank of Nigeria Plc. Nevertheless this study is significance
in that it tries to analyze the assessment of commercial banking in relation to
economic development. In addition this study will contribute to the existing
literature and it will serve as a reference to any researcher or organization
who may be conducting research in similar or related field in the future.
To
the institution, it shall be something to be referred to in years to come
therefore. It shall be placed in the institution meaning other students of the
institution involved in research work can benefit from the work.
To
the bank, particularly First Bank of Nigeria Plc, it will serve as an appraisal
of their performance therefore they can make amendments where they are missing
and serving as a means of encouragement where they are doing well.
Furthermore,
the external users include prospective shareholders the government and the
general public can use these project as a way of encouragement. To the
shareholders, it can encourage them to invest especially if the bank is
performing well. This is because they are sure that they will not run into loss
at the end of the day or their investment in stock. To the government, it shall
serve as a mirror to see the effect of directives in respect of bank lending
and how it affects economic development of the country. And in addition to the
government decision and policy it can use the bank as a means of channeling
it’s capital project through the bank.
To
the general public especially customers of the bank due to the sound track
record, recorded by the bank in term of service delivery and the safe keeping
of customer money and valuables, these study is sure of increasing the level of
confidence to the bank customers.
1.6
SCOPE
OF THE STUDY
The
main thrust of this study is essentially in assessing the contributions of
commercial bank to the economic development of Nigeria. The study based its
reference to First bank of Nigeria Plc, shall concentrate mainly on the lending
of commercial bank and how it affects the economic development of Nigeria.
1.7
LIMITATION
OF THE STUDY
Besides
time and resources constraint the researcher encountered some problems in the
cause of gathering materials and analyzing data. The bank uses unwilling to
release all the necessary data for the research work, probably for the fear of
competitors. This passed a little problem for the researcher. Information that
is vital to this study is considered secret and as such not released.
The
uncooperative attitude of some respondents which led to the non-return of some
questionnaires was another setback to the researcher. The time given to the
researcher to complete the research work was limited couple with daily lecture’s,
the time allowed for this project is too short considering the academic
activities all tied up with a short period of time.